Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 217.53

+1.5%

Nov 28 9:30 AM EST

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To: Petz who wrote (76347)	4/3/2002 2:08:43 PM
From: andreas_wonisch	Read Replies (1) of 275872

Petz, Re: Growing market share via $50 processors is a good long-term strategy for the consumer and small business market. But who wants to buy low-end processors when you can get "high-end" processors for about the same price (e.g. $90 for a XP1600+ compared to $70 for a Duron 1300)? Why sell a undesirable low-end product that nobody wants to buy (read: Duron) when you can establish an image of quality and performance with your high-end solution (read: Athlon XP). AMD said that they "walked away" from some low-end deals in Asia last quarter. Why not go one step further and discontinue your low-end product line altogether? I guess there are still some Thunderbirds in inventory that could be sold instead, not to speak about low-binning Athlon XPs. AMD doesn't have to offer crappy, low-end parts just because Intel does. While units could suffer somewhat from that move ASPs and margins would certainly increase by that move. Too bad that for Jerry unit market share is the most important thing to measure his "success". I hope Hector is smarter. Andreas

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